New era as shipbuilding
production begins in the PhilippinesHopes high for new shipbuilding hub

South Korea's shipbuilding giant Hanjin Heavy Industries Corp. -
Philippines Inc. (HHIC-PI) has started production in Subic Bay of the
20 ships ordered from them by Germany and Greece..

The company, one of the world's largest shipyards, marked the start of
its production two weeks ago with the switching-on of the steel cutting machine led
by Hanjin Chairman Cho Nam Ho .

"It is our pleasure to host the first steel cutting ceremony for the
construction of new 4,300 TEUs (twenty-foot equivalent units)
container ships here in Subic Bay. It is really a historic moment for
our Subic shipyard," said Hanjin Philippines President and Regional
Director Jeong Sup Shim.

Also present during the facility's ceremonial opening were the
Philippine Trade and Industry Secretary Peter B. Favila, Subic-Clark
Alliance for Development (SCAD) Head Ed Pamintuan, Subic Bay
Metropolitan Authority (SBMA) top officials, and representatives of
different international shipping companies.

"I find it a privilege to be part of this special occasion to signal
the grand start of the fabrication of your first ship by having the
honor, on behalf of the President, of pushing the button of the maiden
cutting of steel," Favila said.

He added that the construction of the new ships is momentous not only
for Hanjin but also for the country as the project will boost the
local economy.

Lined up for the first production are six 4,300 TEU capacity container
ships that will be delivered to Diorxy Maritime Corp. in Greece in
2009.

Another six ships will be built on its second production round which
will be delivered to NSC Schiffartsgeselhaft of Germany.

Hanjin expects to generate job opportunities for approximately 30,000
direct and indirect workers.

To date, 6,900 workers are already employed, 4,000 of whom were
skilled workers hired during the pre-operation and construction
stages.

It is also expected to bring the export industries' growth close to
$2-3.5 billion.

"I strongly believe that with the training programs conducted by HHIC-PI
for Filipinos, the vast experience and stature of Hanjin shipbuilding,
and the competent Filipino technicians, this project will introduce
the Philippines in the world map of large-scale shipbuilding as the
new shipbuilding hub in Asia and the Pacific," Favila said.